Midnight (NIGHT)

🛡️ RISK: ⚠️ NIGHT's backing is under review The possible exploit in the Wanchain bridge between Cardano and BNB Chain not only opened an investigation for the reported withdrawal of about 515 million $NIGHT tokens. The most delicate point is what happens to the wrapped representations that could continue circulating on $BNB Chain while part of the assets intended to back them no longer remains at the lock address. In a bridge of this type, the relationship between the token locked on the source network and the asset issued on the destination network is the system's foundation. If that reserve is incomplete, the problem ceases to be merely a suspicious transfer: it becomes a doubt about the collateral, convertibility, and the ability to maintain the promised equivalence between both sides of the bridge. Midnight Foundation confirmed it is investigating the reports, but it has not yet been publicly determined whether the incident is due to compromised keys, a contract vulnerability, an operational failure, or another cause. It is also unclear what portion of the backing remains available, which wallets control the withdrawn funds, or if a recovery path exists. NIGHT's drop reflects this lack of certainty, although the real scope remains under review. For now, the observable data is the token movement; definitive losses, the solvency of the wrapped asset, and responsibilities have not yet been confirmed. Wanchain and Midnight will need to clarify those points to restore the reference between the original asset and its inter-chain representation.

Check the full analysis of the possible exploit, the doubts about NIGHT's backing, and the ongoing investigation: https://t.co/Hz8mSbBg3H

🚨 Wanchain Bridge Suffers $13M Exploit Attackers drained 515M $NIGHT tokens (worth around $13M) from the @wanchain_org -operated #Cardano–#BNB Chain bridge after exploiting a signature reuse flaw, sending $NIGHT down more than 30%. The Midnight Foundation said the breach was isolated to Wanchain's third-party bridge infrastructure, with the Midnight network and Cardano remaining fully secure. 🔗 Know more in comments.

@wanchain_org Read More👇 https://t.co/Odzw8GlhLL